Tag Archives: Computer Fraud

District Court Holds Narrow Computer Fraud Provision, Restrictive State Law, Means No “Direct Loss” Arising From Fraudulent E-mail Scheme

Highlighting the continued problems faced by policyholders in obtaining coverage for “computer fraud,” a Michigan district court recently held that a manufacturer could not recover $800,000 in funds lost after an employee mistakenly wired payment for legitimate vendor invoices into a fraudster’s bank account after receiving a spoofed e-mail requesting payment. In American Tooling Center, … Continue Reading

Hunton & Williams LLP Attorneys Michael Levine and Matthew McLellan Asked to Weigh In On the Apache Cyber Coverage Decision

On November 4, my colleagues Michael Levine and Matthew McLellan provided commentary for Westlaw about the Fifth Circuit’s recent decision in Apache Corp. v. Great American Insurance Co., No. 15-20499, 2016 WL 6090901 (5th Cir. Oct. 18, 2016), on which Michael Levine had previously written a blog post. In the Westlaw Journal: Computer and Internet, … Continue Reading

Fifth Circuit Says “Computer Fraud” Requires More Than “Incidental” Use Of A Computer

In a seemingly illogical decision, the Fifth Circuit Court of Appeals ruled in Apache Corp. v. Great American Ins. Co., No 15-20499 (5th Cir. Oct. 18, 2016), that loss resulting from a fraudulent e-mail did not trigger coverage under a crime policy’s “computer fraud” coverage because the loss was not the “direct result” of computer … Continue Reading
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